Ningbo Huaxiang Electronic Co., Ltd. FY2010

Business Highlights

Joint-venturesShanghai Huaxiang Automotive Parts Co., Ltd.-The Company announced on July 29 that the company and Shanghai Huaxiang Automotive Designing Company, its wholly owned subsidiary, will establish a joint-venture company in Shanghai. The new company being established is at present called Shanghai Huaxiang Automotive Parts Co., Ltd. The Group is investing 120 million yuan in the new company, of which 99 percent or 118 million yuan will be provided by the Company. After Shanghai Huaxiang Automotive Parts is established, it will acquire 60,000 square meters of land for 33.9 million yuan at the new-energy vehicle and major automotive-parts park at Shanghai International Automobile City. By locating its plant in an ideal location only a 1.5-hour drive from Shanghai VW's Anting plant, Shanghai GM's Jinqiao plant, and SAIC's Lingang plant, the company aims to win more business and conduct R&D activities on components for use in new energy vehicles, linking these activities with its production operations. (From a press release, on July 29, 2010)

Merging Jaguar Land Rover's automotive interior parts company-After eight months of negotiations, the Company's subsidiary, Ningbo Laolunsi Automotive Interior Co., Ltd., will absorb and merge UK-based the Jaguar Land Rover Group's company producing automotive interior parts. The deal is expected to be worth more than 1.5 million pounds. For Ningbo Laolunsi Automotive Interior, which acquired Lawrence Automotive Interior Limited three years ago, this will be the second time to purchase a U.K.-based company. According to an announcement made on July 14, Ningbo and Jaguar Land Rover have already signed a letter of intent, with all necessary arrangements expected to be completed during the next two weeks. The interior parts company being acquired is located in Conventry, West Midlands and produces auto parts made from natural wood and carbon-fiber composite materials. The Company has the capacity to manufacture 100,000 sets per year. It is supplying more than 85 percent of natural wood and carbon-fiber composite products required by Jaguar Land Rover. The biggest concern with the acquisition was the issue of continued employment for the workers, but Ningbo Laolunsi says it is going to maintain production operations for at least five years, while making further investment in developing new technologies. Projecting that sales of natural wood products for European luxury vehicles at not only Jaguar and Land Rover but also at others will reach 300 million yuan, the Comapny believes the 1.5 million-pound-deal will translate into an enormous profit. (From a press release, on July 15, 2010)